State-owned Development Bank of the Philippines (DBP) full-year net income surged by 50 percent in 2022 reaching P5.61-billion compared to the P3.74-billion that it earned in 2021, fueled largely by expanding its lending activities as a result of the full reopening of the local economy, a top official said.
DBP President and Chief Executive Officer Michael de Jesus said the rise in the bank’s net income is attributed to increase in loan volume and interest income combined with prudent management of interest expense in spite of the rise in loan loss provisioning.
“This resurgent financial performance of DBP enhances itsinherent strong capacity to support the National Government’s goal of promoting sustainable and equitable economic growth in the country, through the provision of vital financial support to varioussocio-economic initiatives, particularly on infrastructure development,” de Jesus said.
DBP is the eighth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy — infrastructure and logistics; micro, small and medium enterprises (MSMEs); the environment; and social services and community development. It has a network of 132 branches and15 branch lite units.
During the past few years, DBP heightened its role as an infrastructure bank, devoting much of its resources to strategic industries that have higher economic multipliers and generate wider economic opportunities such as road networks, transportation, energy, water, housing and healthcare.
De Jesus said the bank’s total loans grew 12 percent to P527-billion, from the P469.40-billion recorded in 2021, with the bulk of releases amounting to P297.14-billion channeled to projects in infrastructure and logistics sector which represent 56 percent of its total loan portfolio.
He said DBP’s outstanding loan portfolio in 2022 amounted to P105.91-billion for projects under the social infrastructure and community development sector, and P70.04-billion for loans to other developmental projects which include financial and insurance activities, manufacturing, wholesale and retail trade, accommodation, and food services.
